globalEDGE Blog Archive October 2021

Global inflation is on the rise in 2021. Though inflation has experienced common fluctuations throughout modern history, this occurrence is particularly interesting because it cannot be traced to any typical cause of inflation: today’s increasing prices aren’t caused by a significant rise in consumer demand, they aren’t caused by wage increases, and they aren’t even caused by external cost spikes. Instead, the root of late 2021’s inflation is almost entirely logistical, and it presents itself in the form of supply chain bottlenecks, costly backups that are applying immense upward pressure on prices. Carrying some of the blame for these backups, and in the middle of a desperate scramble for workers, is the trucking industry.

Only a decade or two ago, music enthusiasts had to either purchase physical albums, buy songs and albums on a platform like iTunes, or risk their computer security by downloading music illegally. Today, all of that has changed. Music streaming has disrupted the music industry and rapidly altered the way consumers listen to and purchase music. Music streaming services offer millions of songs from thousands of artists for a recurring fee each month, allowing users to access music at a much cheaper rate than previously possible.

The globalEDGE website offers an Academy section with resources for students, faculty, and teachers. You can access this section by selecting 'Academy' from the selection bar at the top of the globalEDGE homepage, then choosing a page from the drop-down menu based on the information you are looking for. Let's dive into some of the information provided in the Academy section of globalEDGE.

Netflix has been considered the leader in the streaming market since its inception in the late 2000s, and its longevity of success is no mistake. While competition grows fiercer year after year and the U.S. streaming market becomes increasingly saturated, Netflix maintains the largest market share, and its success can be largely contributed to its international presence.

As the global climate change crisis continues to become an increasing focus for government policy and corporate social responsibility, automotive manufacturers around the world are increasing the production and research of electric vehicles (EVs). EV sales, as a percentage of global automotive sales, have grown from 0.6% in 2015 to 2.5% in 2019. As sales of EVs are increasing, consumers are expecting increasing improvements to EV technologies. Some of the largest issues currently affecting EV development are range, charging speed, and safety. Currently, the average range of an EV on the road today is about 197 miles. Often for consumers, this range is not enough regarding the average range of a traditional combustion engine car. 

The U.S. and European Union are working together to place restrictions on Big Tech companies. This limit on Big Tech will make it more difficult for companies to fight the newly established rules. Both sides are working together, trying to cooperate on the rules. The groups working on the rules are working on areas including hate speech and private data access. Also, the teams will work to prevent major online platforms from working against third-party vendors. This legislation is planning to limit the growing power of Big Tech companies. Memos were presented at the U.S. - EU Trade and Technology Council Meeting on September 29. Here, both parties covered the advancement of technology and trade tensions, placing an emphasis on updating the world economic regulations according to today's state of technology.

Since the year 2015, the percentage of Americans who watch television via cable or satellite has dropped from 76% to 56%. This recent drop in cable users can be directly related to the rise in popularity of streaming services such as Netflix and Hulu. It is believed that dating back to 2020, about 25 million United States households are expected to cancel their television subscriptions. To add to this, since 2012, 25 million families have already abandoned their television subscriptions. This rapid decline in subscription holders is expected to continue unless a new solution is produced.

Poland and the European Union are on a path for collision as the Polish Constitutional Tribunal ruled that Poland’s constitution takes precedence over some EU laws. Specifically stating that the European Union’s efforts to interfere with matters of the Polish justice system violates the Polish constitution. Many are now speculating about a “Polexit” as tensions rise between Poland and the EU. However, the real question remains: Is Poland going to leave the EU?

At the beginning of the COVID-19 pandemic, the economic outlook for retail stores did not look promising; as countries put “stay at home” orders in place, it looked like online shopping was going to become the future of retail. Yet, recent research shows that retail stores might be more popular than we thought, and they are expected to make a big comeback.

On Monday, October 3, 2021, global airlines within the lobby group International Air Transport Association (IATA) announced their plans of reaching net-zero emissions by 2050. “For aviation, net-zero is a bold, audacious commitment,” International Air Transport Association Director General Willie Walsh said, “but it is also necessary.” To many, this plan may seem unattainable due to limited solutions and resources.

While the holiday season is still a couple of months away, retail companies are preparing to face the looming pressures of the busiest stint of the year. Early predictions show an astounding 7-9% expected increase in retail sales and an 11-15% expected increase in E-commerce sales this holiday season, but companies are wildly unprepared for this increase in demand, as they are dealing with factory closures, shipping container shortages, and labor shortages.

In recent years, scientists have warned that temperatures in Russia are rising at higher rates than the global average. The largest landmass of any northern nation is warming 2.5 times faster than the rest of the world.

When the coronavirus pandemic halted our normal lives in early 2020, the ability to do everything from the safety of home became everyone’s focus. We have seen decreases in travel, increases in shopping online, and even a change in the way we work. Last year, companies quickly developed means for their employees to work from home. Software for video conferences, online chatting, and the ability to access company networks from home rapidly evolved under pressure to resume working back in March of 2020, when everything shut down.

The COVID-19 virus has been ravaging countries as many have recently failed to reach the World Health Organization’s goals for vaccination percentages, whether for lack of access, lack of easy spread of information, or the spread of misinformation surrounding vaccinations. There have been spikes regarding the Delta variant in the United States, Mexico, Russia, Australia, and some parts of Europe and Africa. However, throughout all of this chaos, there is new hope surrounding a new antiviral pill that could be a strong contender for treating COVID-19 without the use of injections.

As of a few weeks ago, President Biden released a submarine security deal between United Kingdom and Australia to undermine China's rapidly growing navy in the South China Sea. This exchange between the United States and UK was deemed monumental as this deal meant both countries would combine information on classified nuclear technology in order to combat China's militarization of the Asia-Pacific area. Signing this business deal was expected to produce many positives such as reinforcing allies and having a major pushback on China's military, but in return, it excluded one of the United States' longest allies; France. Within this break of trust, the United States' diplomatic ties with the French were strained.